Chapter 438: Overambition

[Chapter 438: Overambition]

"Dennis Nohr resigned last week. Remember him? He was the one who demonstrated a special effects shot for you," Stan Winston said as he had just sat down upon returning to the office.

Eric recalled, remembering the special effects artist mentioned by Stan. Dennis Nohr was a tall, thin white guy in his thirties, a Stanford University computer science graduate. Stan had previously introduced him as having done an outstanding job during the post-production of Twister.

"Was he poached?" Eric asked, sensing that if it were a routine resignation, Stan wouldn't have brought it up.

Stan nodded. "Sony Pictures plans to start its own visual effects division and invited Dennis to be the head."

"People move up. We can't stop them," Eric replied. "But is there something else?"

Stan handed Eric a document from his desk, saying, "Eric, look at this. Since the release of Terminator 2, twelve very talented effects artists have resigned, including two supervisors. The turnover among regular employees has been even higher, but I haven't tracked that."

Eric looked it over. Along with the resignation dates, there were notes about where these individuals went; most had been lured away by other effects companies, including Industrial Light & Magic, a major competitor in digital effects. Some even started their own studios.

"You're in better shape here," Eric remarked, looking up with a smile at Stan. "Pixar is having it worse. John even provided me with a report suggesting measures like non-compete clauses to prevent this."

"You don't seem worried at all?" Stan's initial concern lessened in the face of Eric's smile.

Eric set the resignation document aside and addressed Stan. "Stan, do you know how much I've invested in the tech R&D teams at both Pixar and Digital Domain since taking them over?"

Stan shook his head. He was more focused on effects tech and didn't usually pay much attention to finances. Plus, during last year's reorganization of Firefly, Eric separated the R&D teams of Pixar and Digital Domain, assigning them to Ed Catmull, so Stan was even less informed.

Recalling the numbers in his mind, Eric said slowly, "Ed Catmull now has over 400 dedicated tech R&D team members. These are the best talents in various technical fields, making an average of around $100,000 a year. That alone consumes $40 million annually. The professional staff at Pixar and Digital Domain has reached 600, and their average salary is not much lower. That's another $60 million. Additionally, Firefly has invested in three R&D centers at Stanford University, the University of Washington, and UC Berkeley, where the industry's top scientists provide advanced tech support for Pixar and Digital Domain. That adds up to a significant expenditure."

Stan was taken aback. He hadn't realized how much Eric was willing to spend. If it was calculated that way, Eric had invested at least $200 million over the years. In an uncertain landscape like CG effects and 3D animation, only someone like Eric would boldly sink that kind of money without hesitation.

Seeing Stan's surprised expression, Eric continued, "The estimated profit for Firefly in 1990 is $400 million, but in reality, due to the enormous expenses in special effects tech development, we barely made just over $200 million last year."

Stan relaxed further, understanding Eric's point. While the loss of tech talent was regrettable, it wouldn't shake Digital Domain and Pixar's standing in the industry. In Hollywood, aside from Firefly, no other company dared to invest so recklessly in tech.

Industrial Light & Magic had long held the lead in effects, but as the focus shifted from model effects to digital ones, their prior concentration on models would inevitably leave them behind as Digital Domain forged ahead.

Falling behind almost guaranteed continuous lag. Since Terminator 2's release, Digital Domain had already won several projects for effect-heavy films -- these were previously the domain of Industrial Light & Magic. Now with these projects, Digital Domain could accumulate more technology, creating a beneficial cycle where ILM wouldn't catch up, let alone surpass Digital Domain.

Thinking of this, Stan smiled faintly. "Over $200 million in profits isn't bad. Not many of the seven major studios report profits exceeding $200 million. Disney, MGM, and Paramount all reported losses this year. Huh... or should I say Hollywood is back to eight major studios?"

Eric said, "With the acquisition of Disney, it'll soon be back to seven."

Stan recalled the soaring offers for Disney from Firefly and Viacom in the newspapers, feeling an eagerness that he didn't voice. A deal worth tens of billions seemed too far removed from his reality.

"By the way, Eric, after Dennis Nohr left, he asked if he could buy the rights to use software like Maya from Digital Domain. I remember you mentioned this before?"

Eric had considered monopolizing effects software. In the original timeline, Autodesk had dominated the film effects software scene, with Maya and 3D Max as their flagship products. But that wouldn't happen for another decade.

Right now, effects companies were still in a sort of 'aristocratic phase'. They weren't ready to be easily set up with just a handful of tech guys like they would be a decade later. So, this wasn't the best time to profit from effects software. Digital Domain's priority was accumulating technology to reach an unrivaled position. Once the effects industry democratized, Digital Domain could easily enter the software market with its vast tech resources.

"Let's hold off on that for now. Maintaining Digital Domain's tech leadership is crucial. Since they chose to leave, let them rebuild from scratch," Eric said, a faint smile creeping across his face. "I'll have the legal department keep a close eye on this. If these departing staff members infringe on tech, I'll make sure they and their financial backers pay dearly."

"I see," Stan nodded, glancing at his watch. It was well past the end of the workday. "Eric, why don't we go grab dinner? There are some great restaurants over in Venice."

With nothing pressing after that, Eric happily agreed.

...

A week passed, and the final moments of competition between Viacom and Firefly drew near. On January 18, just two days before the bid deadline, Firefly made a splash by announcing four major film projects, including Jurassic Park and Deep Impact. They even dedicated a full page in the Los Angeles Times to promote Twister, stating that a 1-minute-and-30-second trailer would air during the upcoming Super Bowl.

Almost simultaneously, Viacom responded, declaring that upon successfully acquiring Disney, they'd invest $500 million to produce six to eight effect-heavy films.

Having tasted the sweet rewards of high-investment major films, Hollywood's investment scale had been growing over the past two years. Announcing such news bolstered confidence across the board.

After one final week of negotiations, January 20 finally arrived.

...

Even with a 100% confidence level in his heart, Eric woke up before 5 a.m. and by 8 a.m. made his way to Disney's headquarters in Burbank.

As Eric's car pulled up, hundreds of reporters who had been waiting outside all night surged forward, surrounding his vehicle and firing questions as the flashbulbs popped. Various inquiries blended into a chaotic clamoring that filled Eric's ears.

Stuck inside the car, Eric pushed against the door, but it wouldn't budge. He had no choice but to wait patiently for security to clear a path.

After a couple of minutes, a bodyguard from another car alongside Disney security managed to make their way through the frenzied horde to Eric's car door.

"Mr. Williams, can you confirm if Firefly will retain the Disney brand after the acquisition?"

"Will Disneyland be renamed Firefly Park?"

"Will Firefly integrate Pixar Studios into Disney?"

"I heard Disney's top executives signed a $500 million golden parachute compensation package. Will Firefly undertake a large-scale management overhaul post-acquisition?"

"..."

"..."

Such questions would typically be addressed in a press conference following the acquisition's completion, but it was clear the journalists were eager for the latest updates.

Just as the human wall made some room, Eric didn't stick around to reply to any questions. He hurried towards the Disney office building.

Two minutes later, Eric finally entered the Disney lobby, leaving many reporters behind outside.

Collecting himself with a deep breath, Eric followed a Disney staff member to a spacious lounge.

Upon entering, he noticed an older gentleman sitting across from him, reading a newspaper. The man was somewhat rotund, and the most striking feature was the burn scars on his face. It was clear that this was the infamous Sumner Redstone.

Eric hadn't expected to meet him in such a setting. He glanced at the young staff member beside him, who looked just as surprised, quickly realizing she had led him to the wrong lounge -- a space for the Viacom team.

Though Eric didn't mind stepping out, facing the unabashed stare of Redstone made leaving feel like conceding.

With a composed smile, Eric approached Redstone, politely extending his hand. "Mr. Redstone, it's great to finally meet you."

Redstone snorted in disdain, glancing at Eric's extended hand before lifting his newspaper again, ignoring Eric completely.

The young lady who had mistakenly led Eric to the wrong room was now more anxious than ever; if the two were to argue, her job could be on the line. She nervously glanced at Eric, only to see him seemingly unfazed. He shrugged, withdrew his hand, and sat down on the nearby sofa. Looking at the staff member's name tag, he said, "Miss Gleeson, could you get me a coffee? No sugar, just extra milk."

"Uh, sure... okay," the young lady hurried off to prepare his coffee.

Eric picked up a nearby newspaper and started to skim through it.

"Young man, it's best not to be overly ambitious," Redstone's voice cut through Eric's concentration, an aging tone yet full of vigor.

Putting down the paper, Eric turned his attention to Redstone, smiling. "Mr. Redstone, are you talking to me?"

Redstone huffed again, "You're lucky; your films often perform well at the box office. But acquiring Disney is not just about luck."

Eric wasn't surprised by Redstone's coldness and sarcasm. Given that the man had been known to publicly berate his son as a fool, any restraint was commendable. After all, Redstone had been embroiled in lawsuits with his wife, son, daughter, and nephew; his notorious temper was well-known.

In the face of such aggression, Eric didn't shrink back but stood his ground. "I recall someone saying that luck is also a form of skill. Besides, for someone nearing seventy, you should think about enjoying your golden years instead of squabbling with us youngsters."

Redstone glanced at Eric, a knowing smirk forming on his lips. "You know, your film company isn't bad at all. If you go public, let me know; Viacom would be quite interested."

Eric shook his head. "No, you're mistaken, Mr. Redstone. While going public is a choice many companies make, I prefer to keep everything under my control. Though, I'm quite interested in Viacom as well, especially MTV."

"Ha, talk about overambition. That's probably the funniest joke I've heard lately," Redstone chuckled.

"Whether it's a joke or not, we'll find out in a few years," Eric replied, taking the coffee from the young lady who had just returned. He looked at Redstone and continued, "Ever since I stepped into Hollywood, many people have called me overambitious. Yet they've done nothing but watch me continue to push forward step by step. I imagine you'll see that too."

*****

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